Haidilao International (6862) H2 2024 earnings summary

Executive summary

• Revenue grew 3.1% year-over-year to RMB42,754.7 million, with profit for the year up 4.6% to RMB4,700.3 million.

• Core operating profit (non-IFRS) rose 18.7% to RMB6,229.9 million, reflecting improved operational efficiency.

• System sales for Haidilao restaurants increased 3.0% year-over-year, with 415 million customer visits, up 4.5%.

• The company launched the “Pomegranate plan” to incubate 11 new catering brands, contributing to diversified growth.

• A final cash dividend of HK$0.507 per share (RMB2,534.2 million total) is proposed for 2024.

Financial highlights

• Haidilao restaurant operation revenue rose 2.9% to RMB40,397.6 million, accounting for 94.5% of total revenue.

• Delivery business revenue increased 20.4% to RMB1,253.9 million, driven by single-serving fast food.

• Other restaurant operation revenue surged 39.6% to RMB483.3 million, mainly from new brands.

• Raw materials and consumables costs fell 4.3% to RMB16,211.1 million, now 37.9% of revenue.

• Staff costs rose 8.2% to RMB14,113.3 million, or 33.0% of revenue, reflecting higher salaries and benefits.

Outlook and guidance

• Plans to enhance dining experience, expand digital operations, and continue the “Pomegranate plan.”

• Will pursue high-quality asset acquisitions and further franchise expansion, especially in lower-tier cities.

• No specific plans for material investments or capital asset acquisitions as of year-end.